High Net Worth Individual (HNWI) In India
In India, the percentage of High Net Worth Individuals (HNI or
HNWI) have gone up in recent times, owing to a surge in business
opportunities, foreign investments, and new-age digital
entrepreneurs. This lead to a tectonic shift in the wealth
A one-dimensional approach to private wealth management can
shunt the diversification of asset allocation, and the new-age
Ultra HNWIs are willing to explore avenues with tech-enabled,
holistic solutions that span an entire spectrum of financial
The Indian market for ultra HNWI investments is still very
nascent and yet to be explored to its full potential. There is a
wide range of investments for HNWIs that includes estate
planning and tax planning,
alternative investments, fixed deposits, treasury bonds, government and corporate
bonds, etc. even structured philanthropy indicating a
commonality when it comes to their investing modus operandi.
The Difference Between HNWI, Emerging HNWI and Ultra HNWI
|HNI or HNWI
Individuals with more than Rs 2 crores investable
Individuals with an investable surplus of Rs 25 lakhs to
Rs 2 crores
Individuals who have assets worth 200 crores and above.
What Is a High-Net-Worth Individual (HNWI)?
A person or family with significant financial wealth is called
as a high-net-worth individual (HNWI). HNWIs typically have
investable assets over a particular threshold, including cash,
securities, real estate, and company interests. The precise
barrier may vary depending on the nation and financial
institution, although it is typically set at a high level. To
protect and increase their wealth, HNWIs frequently look for
specialised financial services and investment options catered to
their affluent status.
The number of ultra-HNWIs in India has been growing at 12% CAGR.
Types of High-Net-Worth Individuals
Based on their sources of wealth and investing choices,
High-Net-Worth Individuals (HNWIs) can be divided into various
groups. Here are a few typical examples:
Investors classified as sub-HNWIs have a net worth between
$100,000 and $1 million, excluding their personal belongings,
real estate, collectibles, and consumer goods.
Individuals with a net worth between $1 million and $5
million, excluding personal assets, property, collectibles,
and consumer durables, are referred to as high-net-worth
Individuals in the very-high-net-worth (VHNWI) category have a
net worth of at least $5 million, excluding their personal
belongings, real estate, collectibles, and consumer goods.
People with investable assets of at least $30 million,
excluding personal assets, real estate, collectibles, and
consumer durables, are considered ultra-high-net-worth people
(UHNWIs). They constitute the wealthiest category of HNWIs.
It's vital to remember that these criteria could change
depending on places, currencies, and financial organizations.
Additionally, when calculating net worth in the context of HNWIs
and UHNWIs, it is customary to exclude personal assets,
property, collectibles, and consumer durables.
How Are HNWIs Categorized?
HNWIs are categorized based on the value of their liquid
financial assets. Here are the common categories:
Sub-HNWIs: Investors with liquid financial assets between
$100,000 and $1 million, excluding personal assets like a
High-Net-Worth Individuals (HNWIs): Typically defined as
individuals with at least $1 million in liquid financial
assets, excluding personal assets such as a primary residence.
Individuals with investable assets of at least $5 million,
excluding personal assets such a principal residence, are
considered to be very high net worth (VHNWIs).
Individuals with an ultra-high net worth (UHNWI) have
investable assets worth at least $30 million, excluding
personal assets like a principal residence. They represent the
HNWIs with the greatest level of wealth.
It's important to keep in mind that these classifications may
change based on particular institutions, geographical areas,
or currencies. Additionally, it is standard practice to
exclude personal assets, especially principal residences, when
calculating the net worth of HNWIs and UHNWIs.
What Benefits Do HNWIs Get?
High-Net-Worth Individuals (HNWIs) enjoy several benefits due to
their affluent status. Here are some common advantages they
Personalized Managed Investment Accounts HNWIs often
qualify for personalized managed investment accounts that
cater to their specific financial goals and risk tolerance.
These accounts provide tailored investment strategies and
access to a wider range of investment opportunities beyond
regular mutual funds.
Estate Planning Sophisticated estate planning services
are advantageous for HNWIs. In order to secure a seamless
transfer of assets to subsequent generations, reduce tax
ramifications, and safeguard their heritage, their wealth and
assets must be structured.
Tax Planning HNWIs have access to professional tax
planning services that assist them in streamlining their tax
strategies, lowering their tax obligations, and maximizing
their chances of tax savings. These services can help people
save their wealth as much as possible and pay as little tax as
Portfolio management Services for professional
portfolio management are frequently available to HNWIs. Expert
wealth managers or financial advisors can help clients create
and manage diversified investment portfolios that are
specifically catered to their individual financial goals and
HNWIs frequently receive information on exclusive investment
possibilities that may not be accessible to the general
public. These possibilities may include hedge funds, venture
capital agreements, private equity investments, and other
types of alternative investments.
Access to Resources and Networks HNWIs can take
advantage of networking opportunities to build a strong
network of professionals, business leaders, and like-minded
people. Additionally, they may get access to materials like
research papers, market analysis, and training sessions
tailored to HNWIs.
It's important to note that the specific benefits and services
available to HNWIs may vary depending on their financial
institution, wealth manager, or advisory firm. Each client's
situation and needs are taken into consideration when providing
personalized services to HNWIs.
What is KredX?
KredX is India’s leading
invoice discounting platform, providing businesses and their suppliers with cashflow
solutions while offering investors a unique opportunity to make
low-risk and high-returns investment within a short time span.
The alternative short-term investment product enables investors
to invest in a brand-new asset class and get above-market
returns at minimal risk.
A Profitable Solution for Investment & Portfolio
Embrace Portfolio Diversification with KredX
At the end of 2017, holding shares in businesses was the most
favoured investment channel for Indian HNWIs, making up for
almost a quarter of their assets. Cash, bonds, real estate, and
equities accounted for over 21%. Most investments, including
equity funds, are associated with a high level of risk, and
therefore diversification of portfolio is required to maximise
the returns. Invoice Discounting is a great opportunity to build
a portfolio in a novel way for HNWIs seeking diversification in
investment plan. With KredX the HNWI portfolio strengthens to form a
remunerative investment avenue at minimal risk to compensate for
the deficiencies of the changing markets.
Why More HNWIs Are Making The Switch To KredX
KredX offers a reliable and definitive short-term investment
option for HNWIs with minimal risk. Invoice discounting is a
safe investment and a brand-new asset class with a healthy
portfolio diversification at above-market returns and minimal
risk in a short time frame. The entire process is fool-proof,
KredX monitors the security of every transaction through
Escrow Accounts for both Businesses and Investors, separately.
All the important data points after evaluation by the KredX
risk team are summarised in different reports at the vendor,
enterprise, and deal level.
Pre-vetted and verified invoices are uploaded on the platform
with credit score and reports for investors to make a sound
The Pros Of Invoice Discounting For HNWI
Unique fixed-income decisive short-term investment
Strengthen your portfolio with maximum returns within 30-90
- Profitable asset class for 12-20%* IRR
Crafting solutions to earn annualised returns in 30-90 days at
Secured Risk Mitigation
Comprehensive business model with no execution or market risk
- 360° credit risk analysis system at multiple stages
Multiple verifications of the relationship between borrower
To start investing in KredX, one has to be:
- A citizen of India (can be an NRI too)
- Should invest a minimum of 3 lakh INR
- Should hold a valid PAN card
How It Works?
- Investor signs up and logs into the KredX platform
- Investor purchases the invoices of their choice
Funds are disbursed to the vendor’s bank account in 24-72 hrs
Upon tenure completion, enterprise credits invoice amount into
an Escrow account
- KredX then transfers this amount to the investor
- Investor makes ~12-20% profit in 30-90 days
High-Net-Worth Individual (HNWI) in India is defined as someone
with liquid assets of at least $1 million. These individuals
often seek the assistance of financial professionals to manage
and preserve their wealth. Being an HNWI grants them access to
additional benefits and investment opportunities that are
typically unavailable to the general public.
Private wealth managers actively pursue HNWIs due to the
complexities involved in maintaining and growing their assets.
While the United States currently has the highest number of
HNWIs globally, India also boasts a significant number of
It's worth noting that liquid assets do not include primary
residences or works of art, as these cannot be easily and
quickly converted into cash. HNWIs in India rely on financial
experts and specialized services to navigate the complexities of
wealth management and maximize their investment potential.
Individual resident investors, HUF /
Proprietorship registered in India Institutional
investors, NRI investors (Provided you have an NRO
account and comply with basic predefined KYC
guidelines- Pan card and valid Indian address
You can invest a minimum of INR 3 lakhs per deal.
Invoice Financing is a very niche product and
KredX's Invoice Discounting platform ensures
higher short-term yield for its investors. Our
conservative and ever-evolving risk management
policies minimise the risk of investing for our
No. Being an ISO 27001:2013 certified private
entity which deals with secure information from
the clients, KredX takes strict measures in
dealing with secured information.
KredX provides the option of short-term
investments to our investors due to which the
maximum tenure for a discounted invoice is 90